An Analysis of the Determinants of Government-Funded Defense Companies using a Decision Tree

Abstract

This study attempted to analyze the factors that influence the participation of beneficiary companies in the government’s defense industry promotion support project. To this end, experimental data were analyzed by constructing a prediction model consisting of highly important variables in beneficiary company decisions among various company information using the decision tree model, one of the data mining techniques. In addition, various rules were derived to determine the beneficiary companies of the government’s support project using the analysis results expressed as decision trees. Three policy measures were presented based on the important rules that repeatedly appear in different predictive models to increase the effect of the government’s industrial development. Using the analysis methods presented in this study and the determinants of the beneficiary companies of the government support project will help create a sustainable future defense industry growth environment.